Private-fund managers sometimes give investors misleading information about fees and performance, said the Securities and Exchange Commission, which highlighted several types of violations found by examiners as the regulator considers stronger rules for private-equity and hedge-fund managers.
By giving misleading and inaccurate information to investors, private-fund managers may have been able to charge unfairly high fees, the regulator said Thursday in a public letter, called a risk alert. The letter described more than a dozen types of problems it uncovered in its examinations of private-fund advisers, without naming the firms involved.
